Good growth. More to come in 20124 Aug 2011 11:06
In the last six months we have seen Croma sign deals to supply Hitachi and 2 major prisons with photobase. Win a security (with major utility company) contract worth £3.5 million. Gain yet another photobase contract for £450,000 and secure a residential security contract worth £500,000. All this additional revenue will begin to show in 2012.
Nearly all debt has been paid off due to the sale of the avionics business for £1 million, yet we still maintain a price to sales ratio of just x0.375.
Revenues are up 21% to £8.5 million (profit to be announced) yet we have a Market Capitalization of just £3 million.
Things are looking very good for Croma and with all these recent contract wins, 2012 looks like it’s going to be a very good year for earnings.
I maintain my target price of 6p within 12-18 months.
Nothing priced in here at all, the share price should be double what it is. However, with the markets as they are, I guess that’s the reason. Croma is growing nicely, security is one thing companies can’t/won’t scrimp on, even in economically hard times. A rather safe place for a good return on ones investment in my opinion. A screaming Buy.